Farm >100% APY Using This Guide!

It ain't much, but it's honest work.

If you’re looking for competitive yields for your stablecoins, I got good news.

The space is maturing and the yield opportunities are multiplying, but not all are created equal.

In this article, I’ll present two yield farming examples you should add to your watchlist. They are already competitive today and will likely become a top choice in a bull market.

The first example is a more classic approach to yield generation, but the second is quite exotic, yet deserves much needed attention considering its huge returns. Let’s start!

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1. Liminal - limUSD

This is a yield-bearing token like sUSDai that grows in value over time based on its APY performance. Check it out at this link!

Liminal is a Hyperliquid ecosystem protocol that farms delta neutral yields (funding fees) across the most popular coins listed on the Hyperliquid exchange. While this worked well in a bull market, yields have fallen in a bear market.

Plus, delta neutral strategies are quite an advance trading technique to farm funding fees and it’s hard to attract retail with that. This is why Liminal developed the xTokens, like xHYPE.

Instead of users managing an active delta neutral strategy, Liminal simplified this process with the xTokens where the strategy is automated and users only have to hold the xTokens (e.g. xHYPE or xBTC) to get the underlying yield from funding fees.

Now, they went one step further and introduced limUSD.

limUSD will automatically allocate deposited funds across their xTokens chasing yields. Moreover, when funding fees are negative or low, the protocol can re-allocate funds to money markets, staking or TradFi (treasury yields). This keeps yields competitive and protects users against negative funding rates.

In this sense, Liminal acts as a vault curator or strategy manager. This is why they charge a 10% performance fee on any APY generated by the limUSD token. The funds will likely be distributed across a number of yield avenues to spread risk and maximize returns.

The current APY is around 8%, and once funding rates increase again, especially in a bull market, limUSD can easily reach double digit returns. The yield is real and allocations across strategies can be tracked live (dashboard is in development). That makes the yield and risks transparent.

limUSD is natively available on HyperEVM, Ethereum, Arbitrum and soon Solana and you can mint it against USDC, USDT0 or USDH on this page. Then all you have to do is hold the token to accrue the yield. You can also bridge limUSD across networks at no cost (except gas fees).

There is no fee to mint limUSD. However, if you want to redeem to stablecoins there is a 0.3% fee for instant redemptions that goes to limUSD holders based on the available liquidity buffer. Alternatively, you can wait 7 days for zero fee redemptions.

With that said, lets move to the next example which is more exotic, but has 10x the returns! What?! Scroll down.

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2. Hyperliquid - What is the Best Vault?

The best APR may be misleading, that’s why we look at the Sharpe ratio too.

When Hyperliquid launched, they introduced public vaults where anyone could deploy a trading strategy and attract deposits if they were successful. Opening a vault used to be free, but now it has a fee of $10,000.

This new fee has created a huge filter that only attracts professional vault managers that know what they are doing since nobody wants to burn 10k with a few clicks. This has both reduced the number of vaults and boosted their quality by quite a margin.

I’ve studied the existing vaults and there is one I consider better than all. Let me explain why first and then I’ll share the vault link.

When you measure a vault performance, it’s not enough to look at raw APR or TVL. For example, in the above image the drkmttr vault has an APR of 635%, but that comes with a big caveat.

In the period December 2025 - April 2026, the vault had a max drawdown of 159% with no positive returns, unless you were lucky to enter at the bottom. Plus two depositors own $4.5M of the total TVL. For these reasons, this vault is high risk in my opinion, despite its excellent recent performance.

A good vault strategy should reduce max drawdown and show a steady gain over time, despite any intra-day or weekly volatility. This can also be measured using the Sharpe ratio.

The Sharpe ratio tells you how smooth the ride or line is to the upside (see the PNL line above). The higher the Sharpe the less bumps on the road (or less drawdowns). Ideally you want a Sharpe above 1 and definitely above zero since it can also go negative. Below a scale:

• < 1.0: Poor/Sub-optimal

• 1.0 – 1.99: Good/Acceptable

• 2.0 – 2.99: Very Good

• > 3.0: Excellent/Outstanding

The drkmttr vault has a Sharpe of 0.52, meaning its high performance has high drawdowns. Not ideal long term. Short term, it may be good to capitalize on its performance since this month it returned over 52% or 635% annualized! Crazy.

Naturally, we then ask ourselves the following question.

What is the vault with the best Sharpe on Hyperliquid?

• It’s called pmalt and its Sharpe is 3.34!

That’s almost unbelievable, yet this vault has been ongoing for over 571 days. Check the PNL line below, it’s a steady uptrend with minor fluctuations. That makes the Sharpe high. It’s current APR is 89% or 10x higher than Liminal’s limUSD.

The max drawdown on this vault is 1.88% in the past year. Below is a comparison of the two vaults: drkmttr and pmalt. Long term, pmalt is superior.

The pmalt vault APR can vary from 50% to over 100%. From a risk perspective, its Sharpe ratio is amazing, and the strategy is working great. That does not mean things can’t change in the future!

However, the vault operates a delta neutral / pair trading strategy which keeps drawdowns low since it makes a profit on any direction in the markets. I believe the vault is farming mean reversion and divergences between pairs.

Since the strategy is naturally hedged, even the October 10th 2025 crash did not impact it much. On the contrary, it is one of the few vaults that made good money on that day.

The pmalt vault manager can be followed on X at this link and I suggest you follow them if you plan to make a deposit. I believe this vault will become a top 10 one in due time.

Note that there is a cap in vault deposits since the leader has to own at least 5% of the total TVL. Hence if the cap is hit, the leader needs to deposit more to increase the cap and allow new deposits. This makes vault operators have skin in the game.

Another vault that does well in a bullish market is the one called Long Hype & BTC | Short Garbage. I recommend this vault if you’re bullish on HYPE. If HYPE is in a correction/downtrend, avoid it.

You can check the individual vault stats on this page or compare them, simply enter the vault name in the search bar and you can select it. Then scroll down for the vault stats by timeframe.

Let me know in the comments if you’re using any Hyperliquid vaults and how that went for you to date.

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